airport area infrastructure tif district:
DESCRIPTION
Airport area infrastructure TIF district: . Public Hearing Presentation Oct 21, 2013. The Goals:. Utilize state-enabled tools to better economic development in the Airport Area of Londonderry; to improve job production, increase the tax base and industry innovation - PowerPoint PPT PresentationTRANSCRIPT
AIRPORT AREA INFRASTRUCTURE TIF DISTRICT:
Public Hearing PresentationOct 21, 2013
THE GOALS:
1. Utilize state-enabled tools to better economic development in the Airport Area of Londonderry; to improve job production, increase the tax base and industry innovation
2. Accelerate the bond pay-down to reduce taxpayer’s interest costs; each year interest costs $37,500 per $1m borrowed
TIF Public Hearing Oct 21, 2013 3
Why Do Anything?• The TIF District IS an Opportunity
to:• Uses 80 cents on the dollar versus vs.
21 cents on the dollar to pay town debt
• The TIF District MAY be an opportunity for:• Better quality of road and sewer
infrastructure; • Faster growth• Better jobs, more jobs• Greater tax base: $70/sf assessed
value to $100+/sf • Realizing benefits sooner• Expansion potential for road later
(if traffic warrants)• Greater density: more sq ft• Trail system expansion for
residents and new workers
Conditions before funding:• Zero negative affect to existing tax
revenues or tax base• Significant private sector contribution
now and subsequent investment later
TIF Public Hearing Oct 21, 2013 4
Public Policy Decisions:
1. Enable the Airport Area TIF District: Council
A. Enabling does not commit the Town to spending.
B. Possible uses: • Road• Sewer• Utilities• R of W• Trail• Intersection fixes• Lights, sidewalks as required• Administration and marketing
2. TIF Bond at Town Meeting: Public
• Requires public vote• Construction bids before “go”• “Cash-flow neutral or better ”
requirement for Town Manager
• 3. ERZ Expansion: Council• Increase Size of existing zone• Increase the number businesses
that are eligible• No cost to Town
• state tax credit eligibility for local businesses
TIF Public Hearing Oct 21, 2013 5
TIF District Map
August 2013 Revised – October 2013
TIF Public Hearing Oct 21, 2013 6
Economic Revitalization Zone (ERZ)State Enabled Tax
Incentive• Allows for credit against NH business
taxes for Londonderry companies that make significant investments
• Londonderry has two areas already designated
• Expansion would include the TIF area plus known expansion prospects
• Time sensitive: December 31 2013
TIF Public Hearing Oct 21, 2013 7
Economic Recovery Zone (ERZ)
TIF Public Hearing Oct 21, 2013 8
Evolving Visions for Build Out
1993 Charrette 2012 Master Plan
TIF Public Hearing Oct 21, 2013 9
Current Inquires are for Fewer and Larger Buildings
TIF Public Hearing Oct 21, 2013 10
Range of Projects Eligible for TIF Financing:
• Road and Traffic Fixes• $8.5 m to zero
• Trail• $200,000 to zero
• Rights of Ways• Zero
• Sewer• $4.5 M to $2.5m• $4.5m to zero
• Water & Utilities• Zero:
• Developer pays• City of Manchester
• Have Town finance and re-coup?
TIF Public Hearing Oct 21, 2013 11
Investments• Road, Traffic and Trail
Town $ (tax increment)+ grant $+ escrow $+ owners up front (developer exactions)$+ owner/user fees+any other source
Must equal neutral cash flow assuming 3.75% (interest)
• Sewer Town escrow of $2M+ grant $+ Town bonding $+ User and connection fees
• Water & UtilitiesCity of Manchester+ Owner/user fees+ Town bonding if favorable to Town
TIF Public Hearing Oct 21, 2013 12
Financial Worksheet
CapitalExpenses
Non-PropertyTax Funds
Property Tax Increment
TIF Public Hearing Oct 21, 2013 13
Actions NeededTIF District Adoption• Before April 1 2014, • Sooner is better
Bond Vote• Town Meeting March
• 2014 and/or• 2015, 2016….
Road and Sewer Construction Start• By July 2014 to keep existing permits
ERZ• Before Dec 31, 2013
Only Act After :• Right-of-Ways secured• School Board & County
Commission Hearings• Council votes District• Bond Counsel review• Fix a bond rate and term• Town Manger’s review
and determination of “zero-negative cash flow”
TIF Public Hearing Oct 21, 2013 14
Next Steps• Process:
• School Board and County hearings Nov 5 and 19
• Establish baseline assessed value at adoption
• Determine new TIF revenues
• Set best terms/rates for bonding in 2014
• Establish TIF Advisory Board
• Design Qs for Staff:• 2 or 4 lanes and traffic demand• Decide phases• Sewer and drainage placement• Access to MHT land• Water and utilities
• Council Votes• Establish TIF District:
1. Enabling2. Specific site and plan
• Recommend TIF bond at Town Meeting 2014
• Adopt new ERZ zone in 2013• Adopt RSA 49-c if needed to re-coup
costs